Jeff Smith's activist investment firm Starboard Value today released a presentation on their newest holding, Advance Auto Parts (AAP). They now own 3.7% of the company.
AAP currently trades around $190 and Starboard thinks shares could be worth over $350 with some of their changes implemented. They like the favorable industry dynamics and think that AAP has underperformed peers long-term.
Starboard seeks to increase shareholder value via four ways:
- Improve margins through operational efficencies
- Unlock value for Worldpac (underappreciated asset)
- Return capital to shareholders (dividend and/or buyback)
- Pursue industry consolidation
Embedded below is Starboard's presentation on AAP:
You can download a .pdf copy here.
For more from this investor, head to Jeff Smith's recent interview on activist investing.
Wednesday, September 30, 2015
Starboard Value's Presentation on Advance Auto Parts
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